Half Yearly Report

Neptune-Calculus Income and Growth VCT ('the Company') is a Venture Capital Trust listed on the London Stock Exchange which has the objective of generating long term capital growth and tax free dividends for investors. The Company is managed as a VCT in order that shareholders may benefit from the tax reliefs available.

The Company's investment policy is to invest approximately 75 per cent of the Company's funds in a diversified portfolio of holdings in qualifying investments whether unquoted or traded on the Alternative Investment Market ('AIM'). Investments are made selectively across a diverse range of sectors in companies which have the potential to generate growth and enhance their value. The Company does not invest in start-up and seed capital situations. The qualifying investments are managed by Calculus Capital Limited ('Calculus'), and the balance of the Company's investments can be invested in a combination of Neptune income funds and a portfolio of similar income generating UK listed shares and money market instruments.

Accumulated shareholder value represents net asset value per share plus cumulative dividends paid per share.

*Being the latest practicable date prior to publication.

+Including current period revenue.

I present your Company's results for the six months ended 30 June 2014. Net assets per Ordinary Share on 30 June 2014 were 46.8 pence per share compared with 48.5 pence per share as at 31 December 2013. The portfolio saw an increase in value over the period but a major part of the movement is attributable to the dividend of 2.0 pence per Ordinary Share paid in June 2014. This dividend payment took the total cumulative dividends paid on the Ordinary Shares since inception to 24.5 pence per share.

Our qualifying investments, which include both unquoted and AIM companies, are managed by Calculus. Over the period under review, the overall value of the quoted companies rose on a like-for-like basis by approximately 1.3 per cent, compared with a decrease in the AIM market of 7.7 per cent. The value of the unquoted portfolio increased by 7.6 per cent during the period due to an increase in the value of Terrain Energy Limited ('Terrain').

There has been one new investment in the period. A short term loan facility of £100,000 was made available to Lime Technology Limited ('Lime') to facilitate a move away from use of an invoice discounting facility further details of which are disclosed in the Investment Manager's Report.

In February 2014, MicroEnergy Generation Services Limited ('MicroEnergy') redeemed £70,000 loan stock held by the Company at par. The sale proceeds were used towards paying the final 2013 dividend for the year ended 31 December 2013 in June 2014.

In March 2014, the Company accepted an offer made to all shareholders in respect of Expansys plc.

Our non-qualifying investments principally comprise holdings in the Neptune Income Fund and Neptune Quarterly Income Fund which decreased by 3.7 per cent on a like for like basis over the period. At 30 June 2014, the Company also held certain investments in portfolio companies which are non-qualifying and £3,000 in cash funds, as shown in the Investment Portfolio.

A more detailed analysis of qualifying investment performance can be found in the Investment Manager's Review following this statement.

In July 2014, the Company sold its holding of ordinary shares and preference shares in Triage Holdings Limited ('Triage') and £10,000 of its loan facility to Triage was repaid above its carrying value. The remaining loan facility will be repaid in two equal annual tranches in 2015 and 2016.

Also in July 2014, the Company made a further short term loan facility of £35,000 available to Lime.

The 2013 final dividend of 2.0 pence per Ordinary Share was paid in June 2014 following shareholder approval at the AGM. In line with our policy of maximising tax-free dividends to shareholders, the Directors are pleased to declare an interim dividend of 1 penny per Ordinary Share, payable on 15 October 2014 to shareholders on the register on 19 September 2014.

UK economic conditions have improved during the first six months of the year and we believe the investments in the portfolio are well placed to benefit from a stronger economy.

Philip Stephens

Chairman14 August 2014

Calculus advises the Company in respect of qualifying investments made by the Company.

At 30 June 2014 the portfolio of qualifying investments comprised 14 companies made up of both AIM quoted and unquoted stocks. The Company continues to meet the requirements for approved VCT status.

We are pleased to report that the quoted portfolio went up in value by 1.3 per cent compared with a decrease in the AIM market of 7.7 per cent.

At the period end, EpiStem Holdings plc ('EpiStem') is valued at over 2.5 times initial cost. EpiStem is a biotechnology company commercialising its expertise in adult stem cells in the areas of infectious and epithelial disease. EpiStem's Genedrive, a handheld rapid diagnostics device, is undergoing regulatory approval for tuberculosis ('TB') in India where TB has reached epidemic proportions (with an estimated 2-3 million cases). In July 2014, the Company entered into a collaborative funding agreement with Global Health Investment Fund 1 ('GHIF') to support the roll out of the Genedrive molecular diagnostics platform. Under the agreement, GHIF, which is partially backed by the Bill and Melinda Gates Foundation, has invested $8.0m by way of a convertible bond.

InfraStrata plc ('InfraStrata') is an independent petroleum exploration and gas storage company. Significant unrisked P50 prospective resources of 450 million barrels have been identified at the Larne-Lough Neagh basin in Northern Ireland (PL1/10) in which InfraStrata has a 45 per cent interest. The company plans to drill a first exploration well in late 2014. InfraStrata has a portfolio of other conventional and unconventional energy assets onshore in the UK. The company also plans to drill a test well at its Islandmagee gas storage project in the near future.

At 30 June 2014, the value of the unquoted portfolio was £3.5m. The portfolio increased by 7.6 per cent on a like for like basis due to an increase in the carrying value of Terrain during the period.

Terrain continues to make good progress. Terrain has interests in nine petroleum licences; Keddington, Kirklington, Dukes Wood and Burton on the Wolds in the East Midlands, Larne, and a licence offshore to the north of Larne, in Northern Ireland, Brockham in Surrey and Bruckmuhl and Starnberger See in Germany. Terrain is currently producing from wells at Keddington and Brockham. On average 70 barrels of oil per day and 50,000 standard cubic feet of gas per day are being produced (gross).

Two exploration wells are planned in 2014 on the Larne and Burton on the Wolds licences. Should the Larne well be a success it would be game-changing for the company as 450 million barrels of prospective resources have been mapped in the area (45 million barrels net to Terrain). Also this would greatly increase the likelihood of finding commercial oil reserves in the 27th Offshore Round licence to the north of Larne which was awarded by DECC to Terrain and its partners in early 2014. Terrain has a 20 per cent share of the licence.

Waterfall Services Limited ('Waterfall'), which provides catering services to the aged care and education markets, traded significantly ahead of expectations for the year to March 2014. There were a number of contracts up for retender in the period and, although there were some losses, the company successfully retained a large contract for Durham primary schools amongst others as well as winning new business through the award of new contracts. In addition Waterfall acquired Pro Serv, a business in the South West with a focus on the education market, which has been integrated and performs well. This strong performance has continued in the current period and, looking forward, the company is also positioned to benefit from the Universal Free School Meals for Infants to be introduced from September 2014.

During the period, MicroEnergy redeemed £70,000 of its loan stock. MicroEnergy owns and operates a fleet of small onshore wind turbines (

RMS, which provides port services on the Humber and Trent, continues to perform well and has exceeded its budget for the first six months of 2014.

Lime is a low carbon based building materials developer. A new Chief Operation Officer was appointed in March 2014 and, as a consequence, the business has seen a number of personnel changes. Particular focus has been placed on improving margins across the group. Lime won the prestigious Ashden Award in the 'sustainable buildings' category and won a key contract with Bouygues UK for Vicars Green School. The increase in activity across divisions, including the External Wall Insulation (EWI) division, has placed a strain on working capital.

During the period, a short term loan facility of £100,000 was made available to Lime to facilitate a move away from use of an invoice discounting facility where the terms and conditions were judged too onerous and expensive. This short term facility is secured on any sums receivable by the company from HM Revenue & Customs by way of Research and Development Relief for Corporation Tax ('sums receivable').

UK based payments technology company, Secure Electrans Limited, was placed in administration in March 2014 when it was unable to demonstrate adequate visibility over future working capital needs and secure funding. We continue to value the loan stock, some of which is secured on the intellectual property (IP) portfolio, at par as we believe the realisation from the sale of the IP portfolio is likely to cover outstanding loans.

The holding of ordinary shares and preference shares in Triage were sold in July 2014 and £10,000 of its loan facility was repaid for a consideration slightly ahead of carrying value. The remaining loan facility will be repaid in two equal annual tranches in 2015 and 2016.

Also in July 2014, the Company made a further short term facility of £35,000 available to Lime secured on sums receivable.

Other than disclosed above, there have not been any significant developments in the qualifying portfolio since the period end.

John Glencross

Calculus Capital Limited

14 August 2014

The ten largest holdings by value are included below:

* The valuations of certain investments include small non-qualifying investments. These cost £120,839 and are valued at £110,941.

# The valuation of Lime Technology Limited loan stock includes rolled up interest that is non-qualifying. This cost £16,544 and is valued at £16,544.

† The valuation of Heritage House Media Limited loan stock includes rolled up interest which is non-qualifying. This cost £309,118 and is valued at £nil.

\* These figures are audited.

The total column of this statement is the profit and loss account of the Company. The revenue and capital columns are provided as supplementary information in accordance with The Association of Investment Companies Statement of Recommended Practice.

All items in the above statement derive from continuing operations. No operations were acquired or discontinued in the period.

There is no statement of recognised gains and losses as there were no other gains and losses.

The relevant accompanying notes are an integral part of this statement.

\* These figures are audited.

The relevant accompanying notes are an integral part of this statement.

\* These figures are audited.

The relevant accompanying notes are an integral part of this statement.

\* These figures are audited.

The relevant accompanying notes are an integral part of this statement.

The unaudited half-yearly financial information does not constitute statutory financial statements as defined in Section 434 of the Companies Act 2006 and has not been reviewed nor audited by the auditors. This information has been prepared on the basis of the accounting policies used in the statutory financial statements of the Company for the year ended 31 December 2013. The statutory financial statements for the year ended 31 December 2013, which contained an unqualified auditors' report, have been lodged with the Registrar of Companies, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain statements under Section 498(2) or (3) of the Companies Act 2006.

The Directors have declared an interim dividend of 1 penny per Ordinary Share. This dividend is payable on 15 October 2014 to shareholders on the register on 19 September 2014.

Revenue return per Ordinary Share is based on the net deficit on ordinary activities attributable to the Ordinary Shares of £33,000 (30 June 2013: net return £6,000, 31 December 2013: net deficit £12,000) and on 11,311,329 (30 June 2013: 11,346,503, 31 December 2013: 11,328,771) Ordinary Shares, being the weighted average number of Ordinary Shares in issue during the period.

Capital return per Ordinary Share is based on the net capital return for the period of £61,000 (30 June 2013: net capital return £72,000, 31 December 2013: net capital deficit £566,000) and on 11,311,329 (30 June 2013: 11,346,503, 31 December 2013: 11,328,771) Ordinary Shares, being the weighted average number of Ordinary Shares in issue during the period.

Total return per Ordinary Share is based on the total return on ordinary activities attributable to the Ordinary Shares of £28,000 (30 June 2013: net return £78,000, 31 December 2013: net deficit £578,000) and on 11,311,329 (30 June 2013: 11,346,503, 31 December 2013: 11,328,771) Ordinary Shares, being the weighted average number of Ordinary Shares in issue during the period.

The basic net asset value per Ordinary Share is based on net assets (including current period revenue) of £5,288,000 (30 June 2013: £6,270,000, 31 December 2013: £5,486,000) and on 11,311,329 (30 June 2013: 11,311,329, 31 December 2013: 11,311,329) Ordinary Shares, being the number of Ordinary Shares in issue at the end of the period.

During the period, the Company did not issue or purchase for cancellation any Ordinary Shares. During the period ended 30 June 2013, pursuant to an Enhanced Share Buyback, 4,052,635 Ordinary Shares of 10p were purchased for cancellation at 54.83 pence per share for which the consideration was £2,233,175 including stamp duty of £11,115. Pursuant to the Enhanced Share Buyback, the Company issued 3,930,990 Ordinary Shares at 56.53 pence per share and a further 81,094 Ordinary Shares were issued pursuant to a Top Up Offer at the same price.

The Company's qualifying investments are managed by Calculus. John Glencross, a Director of the Company, has an interest in Calculus.

Calculus receives annual fees from Terrain and Lime for the provision of John Glencross as a Director, as well as annual monitoring fees. Calculus also receives annual fees from Hampshire Cosmetics Limited ('Hampshire') for the provision of a director, as well as annual monitoring fees. Calculus receives an annual monitoring fee from MicroEnergy and Human Race Group Limited ('Human Race'). Calculus also receives fees for the provision of a director to Dryden Human Capital Limited ('Dryden'). Other funds under the management or advice of Calculus have also invested in Terrain, Lime, MicroEnergy, Hampshire, Human Race and Dryden. In the six months to 30 June 2014, the amount payable to Calculus which was attributable to the investment made by the Company was £1,250 (30 June 2013: £2,671; 31 December 2013: £4,519) (excluding VAT) from Terrain, £2,301 (30 June 2013: £1,751; 31 December 2013: £2,889) (excluding VAT) from Lime, £179 (30 June 2013: £334; 31 December 2013: £674) (excluding VAT) from MicroEnergy, £1,682 (30 June 2013: £1,516; 31 December 2013: £3,295) (excluding VAT) from Human Race, £367 from Hampshire (30 June 2013 £0; 31 December 2013: £0) (excluding VAT) and £1,514 (30 June 2013: £0; 31 December 2013: £608) (excluding VAT) from Dryden.

In the six months to 30 June 2014 Calculus received no arrangement fees (30 June 2013: £510; 31 December 2013: £170) in respect of investments made by the Company.

The half-yearly financial report, which has not been audited or reviewed by auditors pursuant to the Auditing Practices Board Guidance on Review of Half-Yearly Financial Information is the responsibility of, and has been approved by, the Directors. The Directors confirm that to the best of their knowledge the half-yearly financial report, which has been prepared in accordance with the Disclosure and Transparency rules and in accordance with applicable accounting standards including the statement 'Half-yearly financial reports' issued by the UK Accounting Standards Board, gives a true and fair view of the assets, liabilities, financial position and the deficit of the Company as at 30 June 2014.

The Directors confirm that the Chairman's Statement, the Investment Managers' Reviews, and note 7, include a fair review of the information required by DTR 4.2.7R, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year, and 4.2.8R of the Disclosure and Transparency Rules.

The Directors of Neptune-Calculus Income and Growth VCT plc are:

Philip Stephens

John Glencross

David Kempton

By order of the Board

Philip Stephens

Chairman

14 August 2014

The half yearly report will shortly be posted to shareholders. Copies of the report will also be available from the Company's registered office at 104 Park Street, London, W1K 6NF or from the Qualifying Investment Manager's website at www.calculuscapital.com/neptunevct.aspx.